Longmont, Colo. In a move designed to streamline the company's Home Healthcare Group and reduce costs, Sunrise Medical in May made sweeping changes to its management team.

Sunrise named new presidents for two of the manufacturing divisions, gave three vice presidents new assignments and eliminated five vice president positions, including that of marketing vice president Judy Hirigoyen. The moves are part of a companywide downsizing that will cost roughly 375 jobs, or 8 percent of the company work force, and is expected to save $12 million in expenses.

"You never want to let good people go," said Tom O'Donnell, president of Sunrise's HHG. "It's not any fault of theirs. It's a reflection of where we were with costs and expenses."

Among the changes: Dan Easley, former president of the respiratory products division, was named president of mobility products; Rich Kocinski, former vice president of product management for respiratory products, was named respiratory division president; Eric Vielberg, former vice president of mobility operations, was named VP of process improvement; and Jay Summer, former vice president medical/surgical and wholesale drug distributor sales was named vice president of national accounts. Robb Herring, former director of retail programs, is vice president of distributor sales.

"We've flattened the organization and gotten product vice presidents closer to the sales process and the customer," O'Donnell said.

The company also closed a factory in Katy, Texas. TiltMaster production will move to a Fresno, Calif., location.

Earlier, the company reported net income of $1.8 million, or 8 cents a share, for its third quarter ended April 2, 1999, compared with net loss of $98,000, or 0 cents a share, for the same period a year ago.

Revenue rose 3 percent to $170 million, up from $164 million the previous year. Home Healthcare Group sales grew 2 percent to $91 million for the quarter, up from $89 million for the same quarter a year ago.

While the results were encouraging, Sunrise Chairman and President Richard Chandler said they were not as good as anticipated. "We were pleased with our asset management this quarter but disappointed with sales growth of 3 percent and EPS of only 8 cents," he said. "Our post-re-engineering profit rebound is coming more slowly than anticipated." -K.G.